EVANSVILLE — City Council wants transparency from ECHO Housing Corp. after allegations the nonprofit's former director misused funds.

To leverage that transparency, they will vote on an ordinance withholding $466,000 of federal funds and other city funds from the group, City Council President Jim Brinkmeyer, D-6th Ward, said Thursday.

“Since we’re beholden to the taxpayer, and we’re in control of the purse strings, I think putting them on hold is the proper thing to do,” Brinkmeyer said.

ECHO Housing Corp. is reeling from allegations its former director Stephanie TenBarge misused the nonprofit's funds, including paying her personal property taxes using group's money. The Evansville Police Department opened an investigation into the allegations despite ECHO Housing's Board of Directors repeated attempts to block an investigation.

City Council learned Monday ECHO Housing hired a forensic accountant to audit the nonprofit's financial records for the last several years in light of the TenBarge allegations. Some on council weren't happy to learn the audit results would likely be private.

Brinkmeyer says council should hold $466,000 in Community Development Block Grant and HOME Investment Partnerships Program federal money until they see the results of a financial audit.

"I don't think that's too much to ask," he said.

Councilman Jonathan Weaver, D-At-Large, and Justin Elpers, R-5th Ward, drafted an ordinance that would withhold all money the city gives ECHO until City Council sees two things: results of an independent, third-party audit of ECHO's financial records going back three years and proof to City Council that ECHO changed its policies and procedures to prevent fraud or embezzlement from happening again.

The vote won't come until April 9. Elpers will ask to suspend council rules to give City Council the choice to pass the ordinance without a second reading.

Federal money City Council allocated for ECHO on March 12:

ECHO Community Housing Jacobsville NRSA Expansion - $200,000

ECHO Community Housing Promise Zone - $80,000

ECHO Family Enrichment Center - $30,000

ECHO Lucas Place - $50,000

ECHO CHDO Operating Cost - $6,250

ECHO Garvin Lofts - $100,000

Tomorrow we will be looking into withholding recently allocated funds to Echo until this council sees an independent audit and the Echo board puts new policies into place. https://t.co/8fXVmDG0bD

Weaver is also irritated because members of Mayor Lloyd Winnecke's administration didn't inform City Council of what was going on with TenBarge before City Council voted on appropriating the $466,000 of federal funds for ECHO. The vote was March 12, two days before TenBarge's exit from ECHO was announced and three days before the C&P first reported she allegedly misused the nonprofit's funds.

"The more we think about it the more irritated we are. ... We just wish somebody in the administration was a little more forthcoming before we took that vote," he said.

Members of the Evansville Police Department were aware of the allegations as early as Feb. 26, two weeks before the vote.

Director of Metropolitan Development Kelley Coures said City Council can hold the funds, but those 2018 federal funds won't even be dispersed until the fall, several months from now.

As for the March 12 City Council vote to give ECHO the federal block grant money, Coures said he didn't tell City Council because he didn't have a lot of details at that point.

He understands City Council wanting to withhold funds, but said it won't help the situation.

"ECHO helps some of the most vulnerable people in the community. None of those people did anything wrong. I would hate to see those folks end up in a worse situation because of that."

"The blame goes back to the person who did what she did," Coures said.